The dealmaking game has fundamentally changed. It’s no longer about the number of transactions closing or the capital sitting on the sidelines waiting to deploy. It’s about strategy. It’s about execution certainty. And it’s about knowing, before you ever put in a bid, whether you can actually close.

For Middle Eastern buyers, particularly those in the UAE and Saudi Arabia, this shift creates a real moment. For years, the region was characterised by capital abundance but limited deal sophistication. Now, that’s flipping. The buyers who are winning internationally are the ones who’ve figured out that a superior funding plan can actually win deals. That financing flexibility isn’t a luxury—it’s a competitive differentiator. And that the AI infrastructure boom isn’t about software: it’s about power grids, cooling systems, and the unglamorous but essential backbone that makes AI possible at scale.

Here, Lukas Poensgen, co-head of EMEA M&A at Bank of America, and Eddie Martin, head of EMEA Leveraged Finance, discuss what’s driving the next wave of dealmaking, why the Middle East’s advantages in energy and policy matter more than people realise, and what could actually derail the momentum.

Global M&A has regained momentum. What is different about this cycle?
Poensgen: The recovery is being led by value rather than the number of transactions. We are seeing larger, strategic situations, while activity at the smaller end is more measured. Global deal value is on track to surpass $6tn in 2026, with larger transactions driving activity.

In MENA, 643 transactions worth $48.7bn were announced in the first half of the year, according to LSEG Deals Intelligence. More stable financing conditions have helped. There is also a behavioural shift: as companies see competitors pursue strategic opportunities, there is greater pressure to consider where M&A can accelerate growth or strengthen competitive positioning.

How has financing become part of the strategic decision?
Martin: Financing can no longer be arranged only after a price has been agreed. Buyers need to consider funding certainty, structure and flexibility from the outset because these factors can affect valuation, execution risk and the transactions they can pursue. The backdrop is materially stronger than it was 18 months ago. Bank financing capacity has strengthened, loan and high-yield markets are available, and private credit remains relevant where borrowers need flexibility. For well-prepared buyers, the advantage is having genuine choice rather than relying on one source of capital.

Is the financing dynamic different in the Middle East given the region’s access to capital?
Martin: It can be. For many of the region’s largest buyers, the question is not simply whether capital is available, but how best to fund a transaction. Strong balance sheets provide flexibility, while external financing can preserve liquidity, optimise the capital structure and maintain capacity for other investments. As Middle Eastern buyers pursue larger and more complex cross-border transactions, having several financing options available can strengthen execution certainty and provide greater flexibility around how capital is deployed.

What does that mean for UAE and Saudi buyers pursuing opportunities overseas?
Poensgen: It makes early alignment between investment strategy, financing and regulatory planning especially important. Outbound M&A by MENA acquirers totalled approximately $25bn in the first half of 2026. In competitive cross-border processes, execution certainty can be a differentiator. Sellers assess not only price, but also the credibility of the funding plan, the buyer’s regulatory preparedness and its ability to complete.

How is AI changing what companies want to own?
Poensgen: The opportunity extends well beyond software. There is increasing focus on the “picks and shovels” of the AI economy: power generation, electricity grids, data-centre infrastructure, cooling systems and industrial technologies. At the same time, some sponsors are more cautious about software businesses whose competitive position five years from now is difficult to predict. That is increasing the relative appeal of established industrial and infrastructure assets. The key question is which businesses provide the energy, equipment and physical infrastructure required for AI adoption at scale.

Does this create a distinctive opportunity for the UAE and Saudi Arabia?
Poensgen: Both markets combine access to capital, policy ambition and potential advantages in energy availability, all of which matter for data-intensive infrastructure. The investment case must still be assessed project by project, including power requirements, financing structure and revenue visibility. The opportunity extends across the infrastructure required to support AI at scale, from power and cooling to connectivity and industrial supply chains as well as partnerships that can bring technology and manufacturing capability into the region.

Which other sectors could drive Middle East-related cross-border activity?
Poensgen: Infrastructure, energy, digital connectivity and advanced manufacturing are likely to remain important areas of cross-border activity for the region. These sectors align closely with economic diversification priorities and the growing focus on technology, energy security and industrial development. We are also seeing interest in opportunities that can bring strategic capabilities, technology and expertise into the region through partnerships and long-term investments. Increasingly, M&A is not simply a way to deploy capital, but a route to acquiring capabilities and building strategic positions internationally.

What could disrupt deal activity in the second half?
Martin: The market has remained resilient through geopolitical shocks. A more material risk would be a deterioration in financing conditions, particularly if renewed inflation led to a sharp rise in interest rates. That would affect debt affordability, investor demand and valuation expectations. Geopolitics still matters if it disrupts energy markets or the wider macroeconomic environment, but uncertainty does not automatically stop strategically important transactions. Buyers should preserve financing alternatives rather than depend on a single market remaining open. For Middle Eastern buyers with significant liquidity, that optionality can also preserve balance-sheet capacity for a broader investment programme.

What is your outlook for M&A in the UAE and wider Middle East?
Poensgen: We expect the region to remain an important force in international dealmaking. Outbound M&A by MENA acquirers totalled approximately $25bn in the first half of 2026. Activity will continue to be shaped by economic diversification, AI infrastructure, energy, advanced manufacturing and the international ambitions of sovereign and strategic buyers. The region is increasingly contributing not only capital, but long-term industrial ambition and strategic partnerships that can shape cross-border investment.

And from a financing perspective?
Martin: Access to capital is clearly a strength of the region, but the differentiator is increasingly how that capital is deployed. Financing flexibility can help preserve liquidity, optimise capital structures and maintain capacity to pursue multiple opportunities. That becomes increasingly important as Middle Eastern buyers pursue larger and more complex transactions internationally.

Saudi Arabia’s Ministry of Energy said several energy sector facilities and installations in the Kingdom’s southern region were targeted in attacks on Tuesday morning, triggering fires and forcing a temporary suspension of some operations, according to the Saudi Press Agency (SPA).

An official source at the ministry said the relevant authorities immediately began responding to the incident and implemented all necessary measures to contain the situation.

The attacks caused fires at several locations, resulting in the temporary halt of some operations. Specialised emergency teams have since been deployed to extinguish the fires, secure the affected sites and assess the extent of the damage, SPA reported.

The ministry also confirmed that several Saudi citizens and residents sustained injuries of varying severity in the attacks and are receiving medical treatment while response operations continue.

Authorities said they remain focused on managing the aftermath of the attacks, safeguarding energy facilities and personnel, and ensuring operational continuity through approved contingency plans.

No further details were provided on the extent of the damage or the parties responsible for the attacks.

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Jasem Albudaiwi, secretary general of the Gulf Cooperation Council (GCC), said the Unified Gulf Tourist Visa project will be launched soon, describing it as an important step toward strengthening Gulf integration and facilitating the movement of visitors among GCC countries.

“This will represent an important step towards strengthening Gulf integration and facilitate the movement of visitors among the GCC countries,” he said.

Visa to boost regional tourism

Addressing the “Security and History Dialogue 2026” conference in Riyadh on Sunday, Albudaiwi said the unified visa will enable foreign visitors to travel more easily among the six GCC countries. The initiative is expected to support the tourism sector and enhance the GCC’s position as a comprehensive regional destination, a WAM report said.

On the security front, Albudaiwi emphasised the strong coordination among GCC interior ministers. He noted that a recent meeting held in response to Iranian attacks on GCC countries produced important outcomes that directly contributed to strengthening the security and stability of member states.

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He said the GCC countries are working toward a shared goal of enhancing security cooperation and integration to confront various challenges.

“Coordination, cooperation, and the exchange of expertise and capabilities have continued at all levels since the start of the Iranian attacks on February 28, and that some Gulf states, such as Saudi Arabia, have implemented legislative and logistical reforms to support and assist other member states,” he said.

Focus on digital and cyber threats

Regarding digital challenges, Albudaiwi emphasised the GCC countries’ vigilance toward risks facing young people. He said the GCC states have adopted a unified strategy to combat cybercrime, along with a joint Gulf strategy for dealing with artificial intelligence.

The strategies aim to ensure the effective use of modern technologies while addressing the challenges and risks associated with them.

Albudaiwi also highlighted ongoing Gulf efforts to combat drugs, stressing that gangs, entities and countries are seeking to target Gulf societies, particularly young people, through the promotion of narcotics.

“We have information that there are drug factories whose sole target is Gulf youth,” he said.

He said these schemes prompted GCC countries to adopt a unified strategy to confront the scourge of drugs last year. The strategy includes continuous security coordination and a specialized anti-drug committee that holds regular meetings to unify Gulf efforts in this field.

Expanding Gulf integration

The GCC chief said Gulf countries have achieved numerous accomplishments in recent years that have directly impacted citizens’ lives. These include the mutual recognition of driver’s licenses, facilitating the movement of citizens among member states, electronically linking security systems, and linking traffic violations while developing related services across the GCC countries.

Albudaiwi said joint Gulf action has witnessed remarkable development in recent years. He stressed that the vision of Custodian of the Two Holy Mosques King Salman for Gulf action has contributed to a qualitative shift in security cooperation.

This has been achieved through intensified joint meetings and tangible results that have strengthened the security and stability of GCC countries while enhancing their integration across various fields.

The UAE attracted $48.3bn in foreign direct investment in 2025, ranking ninth globally among the world’s largest FDI destinations, Minister of Foreign Trade Thani Al Zeyoudi said as the AIM Investment Summit opened in Dubai.

Al Zeyoudi said the country’s cumulative stock of foreign direct investment had exceeded Dhs1.17tn, while non-oil foreign trade surpassed Dhs1.9tn in the first half of 2026.

The figures were announced at the 15th edition of the AIM Investment Summit, which was inaugurated by Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

The three-day summit, which runs until September 9 at Dubai World Trade Centre, is expected to bring together 25,000 participants from 191 countries and 540 speakers across 103 sessions.

Al Zeyoudi said the UAE had established itself as a global hub for trade and investment, supported by an open economy, infrastructure and a regulatory environment designed to support business.

He identified artificial intelligence, clean energy, climate technology, food and water security and sustainable infrastructure among the sectors offering future investment opportunities.

The summit is being held under the theme “Reshaping Global Prosperity: Opening New Investment Pathways Towards a Sustainable and Inclusive Future”.

In a keynote address, Sheikh Saud said geopolitical shifts, emerging technologies, changing trade patterns and the energy transition were rapidly reshaping the global economy.

He said the UAE’s development model had been built around openness, infrastructure investment, human capital and entrepreneurship.

Sheikh Saud also highlighted Ras Al Khaimah’s economic diversification, saying the emirate’s business ecosystem now included more than 73,000 companies from over 100 countries.

Ras Al Khaimah has expanded its economy across sectors including manufacturing, tourism, logistics, real estate and emerging industries, he said, adding that the emirate’s tourism strategy aims to triple visitor numbers by 2030.

Ethiopian President Taye Atske Selassie, the summit’s guest of honour, highlighted investment opportunities in clean energy, agriculture, critical minerals, infrastructure and strategic corridors, and human capital.

He said Ethiopia had renewable energy potential of around 60,000 megawatts and was targeting 13,000 MW of installed capacity by 2030, with around 1,000 MW allocated to data centres and mining projects.

Selassie also highlighted plans for a new $12.5bn international airport with a targeted capacity of 110 million passengers and around four million tonnes of cargo annually.

He said the African Continental Free Trade Area represented a market of about 1.3 billion people with combined GDP exceeding $3.4tn.

Selassie also thanked the UAE for supporting human development in Ethiopia, including through the “5 Million Coders” initiative.

AIM International chairman Dawood Al Shezawi said the summit was taking place as global capital increasingly shifted towards new markets and investment opportunities, with discussions focused on identifying emerging growth areas and potential sectors for investment.

Dubai has launched a mobile immigration service that lets passport control officers complete entry and departure procedures at a passenger’s location inside airport terminals during peak periods and emergencies.

The General Directorate of Identity and Foreigners Affairs – Dubai (GDRFA Dubai) said its “Click & Travel” service uses mobile devices integrated with its systems and databases alongside biometric verification technology to verify passengers and complete transactions in approximately 12 to 15 seconds.

GDRFA described Click & Travel as the world’s first mobile service designed to complete airport entry and departure procedures during peak periods and emergencies.

Click & Travel mobile service at departure and arrivals: What it entails

The service removes the need for passengers to reach a fixed passport control service point when it is deployed, allowing immigration officers to reach travellers inside the terminal and complete the required procedures at their location.

GDRFA said approximately 31,373 transactions had been completed through the service between the start of pilot operations in May and August 31 this year.

At departure, Click & Travel is available to all passengers, including UAE citizens, residents and visitors.

For arriving passengers, the first phase covers UAE citizens and residents. GDRFA said the service would be expanded gradually in accordance with approved plans and operational requirements.

Deployed during periods of high passenger traffic

The authority said the mobile system could be deployed when needed and during periods of increased passenger traffic and operational pressure, giving airport teams greater flexibility in managing passenger movements and allocating resources according to operational requirements.

“We place people at the heart of the development process and harness advanced technologies to create an easier and more efficient travel experience,” said Lieutenant General Mohammed Ahmed Al Marri, DG of GDRFA Dubai.

“With ‘Click & Travel,’ instead of passengers having to look for the service, the service comes to them, enabling passport control officers to complete their procedures at their location quickly, securely and flexibly.”

Al Marri said completing more than 31,000 transactions reflected the service’s readiness and ability to operate efficiently within the airport environment.

Major General Talal Ahmed Al Shanqiti, assistant DG for Air Ports at GDRFA Dubai, said the service was designed to increase operational flexibility, reduce waiting points and improve passenger flows while maintaining security and efficiency.

GDRFA said it is continuing to develop Click & Travel and exploring expanding the mobile system beyond entry and departure procedures to other services associated with the passenger journey, subject to approved operational and security requirements.

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